Kensington Mortgages has partnered with Proportunity to allow borrowers with a small deposit to take advantage of Proportunity’s shared equity loan scheme.
Proportunity will lend up to £150,000 or up to 25% of the property value, and Kensington will then offer a first charge mortgage at a lower loan-to-value (LTV).
The combined loan will enable borrowers to borrow up to six times their salary.
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This enables them to buy a property up to 25% bigger than they would otherwise be able to afford.
Proportunity loans work in a similar way to the government’s Help to Buy scheme, but are also available on existing properties and to those who are already on the housing ladder as well as to first-time buyers.
Paul Lewis, head of intermediary partnerships at Proportunity, said: “This partnership is good for Kensington, good for Proportunity and, more importantly, good for the borrower.
“Kensington Mortgages are known as a leader in the specialist lending market, and their forward-looking approach makes them stand out still further as a lender who will reach out to credit-worthy borrowers with real and practical solutions.”
Craig McKinlay, new business director at Kensington Mortgages, says: “This innovative shared loan from Proportunity fills a much-needed gap which will increase in importance as the Help to Buy scheme tails away next year.
“There is a real need to help people who only have a small deposit and don’t have the luxury of a parent or grandparent to help them onto the housing ladder or to move home, this partnership with Proportunity means we can do that.
“The Proportunity shared equity loan will work well with our specialist range of mortgages helping borrowers both to scale up or to buy that first property.
“The fact that Proportunity also makes this available on existing properties and those already on the housing ladder, significantly increases the number of people that we can now help.”